Thursday, April 10, 2008

Japan's Takeda to buy Millennium for $8.8B

Millennium Pharmaceuticals Inc. has agreed to be bought by Japan's Takeda Pharmaceutical Co. Ltd. for approximately $8.8 billion in cash.

Millennium (Nasdaq: MLNM), a Cambridge-based biopharmaceutical company, reported that its stockholders would receive $25 per share, a 53 percent increase over yesterday's close.

Millennium markets Velcade, an injectable blood cancer drug, in more than 85 countries, and has a product in its pipeline that could help treat inflammatory bowel disease. That product is expected to enter Phase 3 clinical trials in late 2008 or early 2009, company officials said.

The company, which reported total revenue of $528 million for 2007, said it has complementary research, development and commercialization capabilities with Takeda. The Japanese company is also focused on areas of oncology discovery and commercialization.

According to company officials, the acquisition has been unanimously approved by the boards of both companies. Upon completion of the deal, Millennium will become a wholly owned subsidiary of Takeda and will continue operations in Cambridge as a standalone business unit and will keep the Millennium name.

During a conference call with investors this morning, Takeda officials said that it would keep Millennium's executive team and Millennium CEO Deborah Dunsire would become president of the subsidiary and report directly to Takeda president Yasuchika Hasegawa.

The deal is expected to close in June, Hasegawa said, during the conference call.